Werecentlyshared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.
As a seller, you will likely be most concerned about‘short-term price’– where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the‘long-term cost’of the home.
TheMortgage Bankers Association(MBA),Freddie Mac,andFannie Maeall project that mortgage interest rates will increase by this time next year. According toCoreLogic’smost recentHome Price Index Report,home prices will appreciate by 5.2% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 5.2% over the next twelve months as predicted byCoreLogic,here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
Author:Rich Conrad Phone: 602-316-6319 Dated: May 9th 2018 Views: 4,361 About Rich: One of my primary goals in real estate is to assist buyers in finding the home of their dreams and ...